/2H5d 1$&%*'ATMOS ENERGY CORPORATION,'CONDENSED CONSOLIDATED BALANCE SHEETS'(In thousands)^March 31,^September 30, ^2001 ^2000^(Unaudited) 'ASSETS$'Property, plant and equipment"$ 1,606,692"$ 1,579,8030'Less accum. depreciation and amortization"618,949"597,457( 'Net property, plant and equipment "987,743 "982,346 'Current assets 'Cash and cash equivalents  "7,623  "7,379 'Accounts receivable, net "247,753 "114,448.'Inventories of supplies and merchandise "6,550 "6,456'Gas stored underground "25,191 "64,222'Prepayments "3,400 "8,101'Total current assets"290,517"200,606('Deferred charges and other assets"173,866"165,806"$ 1,452,126"$ 1,348,758+'SHAREHOLDERS' EQUITY AND LIABILITIES'Shareholders' equity'Common stock"$ 195"$ 160!'Additional paid-in capital"455,610"306,887'Retained earnings"129,633 "83,1544'Accumulated other comprehensive income (loss) "(16) "2,265'Shareholders' equity"585,422"392,466'Long-term debt"354,330"363,198 'Total capitalization "939,752 "755,664!'Current liabilities+"'Current maturities of long-term debt ""15,656 ""17,566#'Short-term debt #"52,987#"250,047$'Accounts payable$"136,847 $"73,031%'Taxes payable %"83,609 %"10,844&'Customers' deposits &"15,884 &"9,923 ''Other current liabilities '"25,754 '"21,085 )'Total current liabilities)"330,737)"382,496*'Deferred income taxes *"99,273*"131,619-+'Deferred credits and other liabilities +"82,364 +"78,979-"$ 1,452,126-"$ 1,348,758M/'See accompanying notes to condensed consolidated financial statements.1'ATMOS ENERGY CORPORATION>2'CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED),3'(In thousands, except per share data)4^Three months ended4^Three months ended5^March 315^March 31 6^2001 6^20008'Operating revenues8"$ 675,1138"$ 314,1979'Purchased gas cost9"536,7899"196,070;'Gross profit;"138,324;"118,127='Operating expenses>'Operation >"33,160 >"34,609?'Maintenance ?"1,824 ?"1,845$@'Depreciation and amortization @"15,905 @"16,490A'Taxes, other than income A"13,544 A"9,196C'Total operating expenses C"64,433 C"62,140E'Operating income E"73,891 E"55,9874G'Equity in earnings of Woodward Marketing, LLC G"6,022 G"1,355H'Miscellaneous income H"317 H"333I'Interest charges, net I"9,817 I"11,027!K'Income before income taxes K"70,413 K"46,648M'Income taxes M"26,339 M"17,075O'Net incomeO"$ 44,074O"$ 29,573!Q'Basic net income per shareQ"$ 1.14Q"$ .94#S'Diluted net income per shareS"$ 1.13S"$ .94U'Cash dividends per shareU"$ .290U"$ .285+W'Weighted average shares outstanding: X'Basic X"38,815 X"31,332Z'Diluted Z"38,919 Z"31,544M\'See accompanying notes to condensed consolidated financial statements.^'ATMOS ENERGY CORPORATION>_'CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED),`'(In thousands, except per share data)a^Six months endeda^Six months endedb^March 31b^March 31 c^2001 c^2000e'Operating revenuese"$ 1,117,903e"$ 538,655f'Purchased gas costf"869,631f"330,978h'Gross profith"248,272h"207,677j'Operating expensesk'Operation k"67,429 k"67,691l'Maintenance l"3,514 l"4,187$m'Depreciation and amortization m"31,686 m"32,990n'Taxes, other than income n"22,811 n"16,681p'Total operating expensesp"125,440p"121,549r'Operating incomer"122,832 r"86,1284t'Equity in earnings of Woodward Marketing, LLC t"8,062 t"4,387%u'Miscellaneous income (expense)u"(2,070) u"1,259v'Interest charges, net v"22,063 v"22,244!x'Income before income taxesx"106,761 x"69,530z'Income taxes z"39,715 z"25,633|'Net income|"$ 67,046|"$ 43,897!~'Basic net income per share~"$ 1.87~"$ 1.41#'Diluted net income per share"$ 1.87"$ 1.40'Cash dividends per share"$ .58"$ .57+'Weighted average shares outstanding: 'Basic "35,780 "31,226'Diluted "35,879 "31,440M'See accompanying notes to condensed consolidated financial statements.'ATMOS ENERGY CORPORATION6'CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS'(UNAUDITED)'(In thousands)^Six months ended^Six months ended^March 31^March 31 ^2001 ^2000+'Cash Flows From Operating Activities'Net income"$ 67,046"$ 43,897-'Adjustments to reconcile net income to1'net cash provided by operating activities:%'Depreciation and amortization:"'Charged to depreciation and'amortization "31,686 "32,990 'Charged to other accounts "1,475 "2,290&'Deferred income taxes (benefit)"(31,018) "3,987)'Net change in operating assets and'liabilities "45,839 "29,2300'Net cash provided by operating activities"115,028"112,394+'Cash Flows From Investing Activities'Capital expenditures"(42,507)"(38,400))'Retirements of property, plant and'equipment, net "745 "1,513+'Proceeds from sale of utility assets "6,625 "--,'Net cash used in investing activities"(35,137)"(36,887)+'Cash Flows From Financing Activities&'Net decrease in short-term debt"(197,060)"(41,565)'Cash dividends paid"(20,567)"(17,916)"'Repayment of long-term debt"(10,778)"(8,313)'Issuance of common stock "6,715 "6,696)'Proceeds from equity offering, net"142,043 "--,'Net cash used in financing activities"(79,647)"(61,098)0'Net increase in cash and cash equivalents "244 "14,409-'Cash and cash equivalents at beginning'of period "7,379 "8,585''Cash and cash equivalents at end'of period"$ 7,623"$ 22,994M'See accompanying notes to condensed consolidated financial statements.